Amusement park giants Cedar Fair and Six Flags to merge in $8B deal, move HQ to NC
In a blockbuster deal, Carowinds amusement park owner Cedar Fair and Six Flags Entertainment Corp announced Thursday they are merging and moving the new company’s headquarters to Charlotte.
Cedar Fair and Six Flags entered into a definitive merger agreement valued at $8 billion, according to a company news release. Cedar Fair is based in Sandusky, Ohio, and Six Flags is in Arlington, Texas.
Carowinds, which straddles the North and South Carolina border, is one of 11 Cedar Fair amusement parks and four water parks in the U.S. and Canada.
The combined company will operate 27 amusement parks, 15 water parks and nine resort properties in 17 states in the U.S., Canada and Mexico.
The merger is expected to close in the first half of 2024, following Six Flags shareholder approval and regulatory approvals. Approval by Cedar Fair unitholders is not required.
More on amusement park companies’ merger
Over the last year through the third quarter, Six Flags and Cedar Fair properties had 48 million visitors. The combined company would generate about $3.4 billion in revenue, according to Cedar Fair’s news release.
With minimal market overlap of park operations, the combined company is expected to reduce earnings volatility through a more balanced presence in year-round operating climates. Just last week, Carowinds said it will not be open year-round next year after all.
Cedar Fair CEO Richard Zimmerman will remain as leader of the combined park, while Six Flags CEO Selim Bassoul will serve as executive chairman of the company’s newly formed board of directors, comprised of 12 directors, six from the Cedar Fair’s board and six from Six Flags board.
The combined company will operate under the name Six Flags and trade under the ticker symbol FUN on the NYSE.
The combined company will be headquartered in Charlotte but will maintain finance and administrative operations in Sandusky, according to Cedar Fair.
Carowinds and Cedar Fair officials did not immediately respond Thursday requesting comment about plans for the Charlotte headquarters or Carowinds.
What the merger means for park visitors
The merger will enhance park offerings by generating stronger cash flow to invest in the various theme parks, Zimmerman said in a statement.
The combined company also will expand park access to season pass holders along with an enhanced, combined loyalty program featuring additional perks. That means season pass holders will be able to choose unlimited access to one park or multiple parks.
Against the merger
But not everyone agrees with the merger.
Land & Buildings Investment Management, a shareholder of Six Flags, said Thursday it plans to vote against the merger because it says it does not maximize the value for all shareholders.
“There are better alternatives available,” Land & Buildings Investment Management said in a statement.
More about the parks
Cedar Fair’s first park opened in 1870, according to the company’s website. Cedar Fair purchased Carowinds in 2006 from Paramount for $1.2 billion.
Cedar Fair has about 4,400 full-time employees and 48,800 seasonal and part-time employees, according to the company’s 2022 annual report.
Carowinds is a 400-acre amusement park that straddles the North Carolina and South Carolina border in Charlotte and Fort Mill, S.C., respectively.
Last year, Cedar Fair said it was considering an unsolicited, non-binding proposal from Orlando-based SeaWorld Parks and Entertainment to purchase all of its parks for $3.4 billion.
Six Flags, which pays homage to the six nations that governed Texas throughout history, opened with its first park in 1961 in Arlington. Six Flags has about 1,450 full-time employees and 41,000 seasonal employees, according to the company.
Six Flags owns 5,850 acres, with another 700 acres with development potential, according to the company’s 2022 annual report. At the end of last year, Six Flags parks had 940 rides, including over 140 roller coasters. Six Flags licenses the rights to use certain Warner Bros. and DC Comics characters at its theme parks.
Notable ownership, ride changes over the 50-year history of Carowinds amusement park
Safety problems at Carowinds ‘ Fury 325 roller coaster
Safety problems at Carowinds made national news this year when, on June 30.
A Carowinds guest captured on video a crack in a column shifting on the popular Fury 325 roller coaster as riders flew by, oblivious to the potential for a catastrophe and despite the park inspecting the ride daily. Carowinds then shut down the coaster.
A new steel support pillar for the coaster was installed July 14 by Bolliger & Mabillard, the roller coaster’s Swiss manufacturer. The park began extensive testing, testing the ride more than 500 times after the new pillar was installed.
In late July, a second crack or break was found in Fury 325, the N.C. Labor Department confirmed The department did not say what part of the coaster they found it on, nor did it say when the latest problem was found.
Carowinds has not disclosed whether it knows what caused the initial fracture. But the park changed how it inspects rides daily, including using drone cameras to examine hard-to-reach areas.
Fury 325, one of the world’s tallest roller coasters, reopened Aug. 10. It debuted in 2015 and features a 1.2-mile track reaching top speeds of 95 mph and a height of 325 feet. It also features an 81-degree drop.
Observer editor Adam Bell contributed to this report
